In a decision with significant implications for securities litigation and enforcement, the United States Court of Appeals for the Second Circuit recently rebuffed an attempt by the US Securities and Exchange Commission (SEC) to broaden the scope of “scheme liability” under Section 10(b) of the Securities Exchange Act of 1934 and Section 17(a)
Enforcement
ESG – Key regulatory risks for financial services firms in the UK and US and how to manage them
Investors are increasingly seeking sustainable financial products and ESG investing, traditional investing combined with sustainable or otherwise philanthropic aims, has seen huge growth in recent years. Regulated firms are also seeking to improve their own ESG performance more generally to build stronger relationships with their stakeholders, including those who use their services. Whilst the growing…
US SEC administrative tribunals held unconstitutional
In a watershed opinion, a divided panel of the Fifth Circuit has ruled that the United States Securities and Exchange Commission’s system of in-house administrative tribunals is unconstitutional.
Read our full update here.
Return of the monitorship: SEC and DOJ settle US$84M FCPA claims and impose monitorship on medical waste services company
In October 2021, Deputy Attorney General Lisa Monaco announced revised US Department of Justice (DOJ) guidance on corporate monitorships, signaling a sharp change in the declining trend of the tool over the past few years. (NRF has previously examined the DOJ’s policy changes.) Recently, the DOJ and the US Securities and Exchange Commission (SEC) announced…
NRF contributes chapter to GIR’s Practitioner’s Guide to Global Investigations
The UK and US white-collar crime teams have again authored the chapter Production of Information to the Authorities in the sixth and latest edition of Global Investigations Review – The Practitioner’s Guide to Global Investigations.
Information requests from regulators continue to raise a host of complex legal and practical issues for entities and individuals.…
Financial Institutions – Regulatory outlook for 2022


As 2021 draws to a close, we look ahead to the trends and new requirements that we may see over the next twelve months for financial institutions (FIs) in the white collar crime sphere as regulators, legislators and individuals continue to adapt to the pandemic and prevailing public opinion.
1. An increase in fraud-related investigations…
US Congressional subcommittee expands its investigation into FinTech companies and pandemic fraud

Like the US Department of Justice, Congress is sharpening its focus on lenders and FinTech companies who facilitated pandemic-relief programs. In the latest development, the United States House Select Subcommittee on the Coronavirus Crisis issued letters to two companies demanding documents and responses to specific questions. It is clear that investigations into pandemic-relief fraud are accelerating, and it appears the Department of Justice is not alone in setting its sights on lenders and their FinTech partners. Businesses and individuals in the financial industry now must be prepared for congressional investigations.
Employees’ use of off-channel communications – growing regulatory interest on both sides of the pond


One of the key risks that financial institutions both sides of the pond are currently grappling with relates to the use by employees of “off-channel” communications. These are typically communications not monitored by the institution and not retained under various regulators’ business records requirements. Despite most companies having a policy that prohibits the use of…
US DOJ establishes a tip line to fight corruption in El Salvador, Guatemala and Honduras
The US DOJ establishes a tip line to fight corruption in El Salvador, Guatemala and Honduras.…
US Justice Department is “surging” resources to corporate enforcement
High-level officials at the Justice Department are warning that the DOJ is “surging” resources in a new effort to combat corporate crime.…